Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Rhea-AI Summary

Trustmark (TRMK) reported strong Q4 2024 performance with net income of $56.3 million, up 9.7% quarter-over-quarter, delivering diluted EPS of $0.92. The company achieved a return on average tangible equity of 13.68% and return on average assets of 1.23%.

For full-year 2024, adjusted continuing operations net income reached $186.3 million, or $3.04 per diluted share, representing a 17% increase from 2023. The Board approved a 4.3% increase in quarterly dividend to $0.24 per share and resumed share repurchase activity, buying back $7.5 million worth of shares in Q4.

Key highlights include total revenue from adjusted continuing operations of $740.5 million, up 5.6% year-over-year, and net interest income growth of 5.4% to $597 million. The company maintained strong capital ratios with CET1 at 11.54% and improved efficiency ratio by 400 basis points to 63.26%.

Positive

• Net income increased 9.7% quarter-over-quarter to $56.3 million
• Full-year adjusted continuing operations net income up 17% to $186.3 million
• Quarterly dividend increased by 4.3% to $0.24 per share
• Net interest income grew 5.4% to $597 million
• Efficiency ratio improved 400 basis points to 63.26%
• Strong capital position with CET1 ratio of 11.54%

Negative

• Deposits decreased 3.0% year-over-year to $15.1 billion
• Nonaccrual loans increased $6.3 million quarter-over-quarter to $80.1 million
• Net charge-offs increased to 0.14% of average loans in Q4

Insights

Financial Analyst

Trustmark's Q4 2024 results showcase a remarkable transformation in operational efficiency and profitability. The 13.68% return on average tangible equity and 3.76% net interest margin reflect superior balance sheet management in a challenging rate environment. The 7 basis point margin expansion quarter-over-quarter demonstrates effective cost control, particularly in deposit pricing where interest-bearing deposit costs decreased by 30%.

The bank's credit quality metrics remain robust with the allowance for credit losses at 1.22% of loans and 341.20% coverage of nonperforming loans. The 0.14% net charge-off rate indicates disciplined underwriting standards. The intentional reduction in higher-cost public funds and brokered deposits by $726.8 million shows strategic liability management, though it impacted total deposit growth.

Three strategic moves warrant attention: 1) The 4.3% dividend increase and share repurchase program signal management's confidence in sustainable earnings growth, 2) The 22.8% year-over-year increase in tangible book value to $26.68 per share reflects significant value creation and 3) The efficiency ratio improvement of 400 basis points to 63.26% indicates successful cost management initiatives.

Earnings and profitability significantly enhanced, share repurchase activity resumed, quarterly cash dividend increased

JACKSON, Miss.--(BUSINESS WIRE)-- Trustmark Corporation (NASDAQGS:TRMK) reported net income of $56.3 million in the fourth quarter of 2024, representing diluted earnings per share of $0.92. Net income increased $5.0 million, or 9.7%, from the prior quarter while diluted EPS increased $0.08. In the fourth quarter, Trustmark’s net income produced a return on average tangible equity of 13.68% and a return on average assets of 1.23%.

Printer friendly version of earnings release with consolidated financial statements and notes: https://www.businesswire.com/news/home/54193799/en

Financial results in 2024, which included the sale of Fisher Brown Bottrell Insurance, Inc. (FBBI) in the second quarter, consisted of both continuing operations and discontinued operations. The discontinued operations included the financial results of FBBI prior to the sale as well as the gain on sale in the second quarter. The discontinued operations results are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented. Financial results from adjusted continuing operations⁽¹⁾ exclude significant non-routine transactions.

For the full year, Trustmark reported net income from continuing operations of $45.2 million, representing diluted earnings per share of $0.74 and net income from adjusted continuing operations⁽¹⁾ of $186.3 million, or $3.04 per diluted share. Net income from adjusted continuing operations⁽¹⁾ in 2024 increased $27.1 million, or 17.0%, compared to the prior year.

Trustmark’s net income from continuing operations in 2024 produced a return on average tangible equity of 3.04% and a return on average assets of 0.24% while net income from adjusted continuing operations⁽¹⁾ generated a return on average tangible equity of 12.71% and a return on average assets of 1.01%.

Trustmark’s Board of Directors announced a 4.3% increase in its regular quarterly dividend to $0.24 per share from $0.23 per share. The Board declared the dividend payable March 15, 2025, to shareholders of record on March 1, 2025. This action raises the indicated annual dividend rate to $0.96 per share from $0.92 per share. During the fourth quarter Trustmark repurchased $7.5 million, or approximately 203 thousand of its common shares. The increase in Trustmark's quarterly dividend and resumption of activity in the share repurchase program have been made possible by continued improvement in profitability and accretion of capital.

2024 Highlights

• Total revenue from continuing operations in 2024 was $561.0 million while total revenue from adjusted continuing operations⁽¹⁾ was $740.5 million, an increase of $39.2 million, or 5.6%, from the prior year
• Net interest income (FTE) totaled $597.0 million, up 5.4% in 2024 to produce a net interest margin of 3.51%, up 19 basis points from 2023
• Wealth management revenue totaled $37.3 million, up 6.2% in 2024
• Noninterest income from continuing operations was a negative $23.4 million in 2024 while noninterest income from adjusted continuing operations⁽¹⁾ totaled $156.1 million, up $7.7 million, or 5.2%, from the prior year
• Noninterest expense from continuing operations totaled $485.7 million in 2024, a decline of $10.0 million compared to the prior year; noninterest expense from adjusted continuing operations⁽¹⁾ declined $2.1 million in 2024
• Efficiency ratio improved 400 basis points to 63.26% in 2024
• Loans held for investment (HFI) increased $139.4 million, or 1.1%, in 2024
• Net charge-offs represented 0.12% of average loans in 2024, excluding portfolio sale of 1-4 family mortgage loans in the second quarter
• Deposits decreased $461.6 million, or 3.0%, in 2024 driven largely by intentional declines in public funds and brokered deposits of $397.9 million and $328.9 million, respectively
• Capital ratios materially increased during 2024; repurchased $7.5 million, or approximately 203 thousand shares, of common stock
• Continued technology investments to enhance efficiency and productivity

Duane A. Dewey, President and CEO, commented, “2024 was a transformational year for Trustmark, reflecting the sale of our insurance agency, the restructuring of our balance sheet, and expanded sales and service initiatives designed to meet the needs of our customers. These actions, along with other initiatives in prior years, have significantly enhanced financial performance and Trustmark’s forward earnings profile. Our capital levels rose meaningfully, which led to the Board’s decision to increase the quarterly cash dividend along with our renewed activity in the share repurchase program. Thanks to the dedicated efforts of our associates, Trustmark is well-positioned for 2025 and beyond.”

Balance Sheet Management

• Loans HFI totaled $13.1 billion at December 31, 2024, down 0.1% from the prior quarter and up 1.1% year over year
• Deposits totaled $15.1 billion at December 31, 2024, down 0.9% from the previous quarter and 3.0% year-over-year
• Maintained strong capital position with CET1 ratio of 11.54% and total risk-based capital ratio of 13.97%

Loans HFI totaled $13.1 billion at December 31, 2024, reflecting a decrease of $10.2 million, or 0.1%, linked-quarter and an increase of $139.4 million, or 1.1%, year-over-year. Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.1 billion at December 31, 2024, down $132.8 million, or 0.9%, from the prior quarter driven by the intentional decline in brokered deposits of $150.0 million. Year-over-year, deposits declined $461.6 million, or 3.0%, driven by intentional declines in public funds and brokered deposits of $397.9 million and $328.9 million, respectively. Trustmark continues to maintain a strong liquidity position as loans HFI represented 86.6% of total deposits at year-end 2024. Noninterest-bearing deposits represented 20.3% of total deposits at December 31, 2024. Interest-bearing deposit costs totaled 2.51% for the fourth quarter, a decrease of 30 basis points linked-quarter. The total cost of interest-bearing liabilities was 2.61% for the fourth quarter of 2024, a decrease of 33 basis points from the prior quarter.

During the fourth quarter, and for the twelve months ended December 31, 2024, Trustmark repurchased $7.5 million, or approximately 203 thousand of its common shares. As previously announced, Trustmark’s Board of Directors authorized a stock repurchase program effective January 1, 2025, under which $100.0 million of Trustmark’s outstanding shares may be acquired through December 31, 2025. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At December 31, 2024, Trustmark’s tangible equity to tangible assets ratio was 9.13%, while the total risk-based capital ratio was 13.97%. Tangible book value per share was $26.68 at December 31, 2024, up 22.8% from the prior year.

Credit Quality

• Net charge-offs totaled $4.6 million, representing 0.14% of average loans in the fourth quarter
• Net provision for credit losses totaled $7.5 million in the fourth quarter
• Allowance for credit losses (ACL) represented 1.22% of loans HFI and 341.20% of nonperforming loans, excluding individually analyzed loans at year-end

Nonaccrual loans totaled $80.1 million at December 31, 2024, an increase of $6.3 million from the prior quarter and a decline of $19.9 million year-over-year. Other real estate totaled $5.9 million, reflecting an increase of $2.0 million from the prior quarter and a decrease of $1.0 million from the prior year. Collectively, nonperforming assets totaled $86.0 million, representing 0.65% of loans HFI and held for sale (HFS) at December 31, 2024.

The net provision for credit losses totaled $7.5 million in the fourth quarter compared to $6.5 million in the third quarter and $6.7 million in the fourth quarter of 2023. The provision for credit losses for loans HFI was $7.0 million in the fourth quarter and was primarily attributable to changes to the economic forecast and net adjustments to the qualitative factors. The provision for credit losses for off-balance sheet credit exposures was $502 thousand, primarily driven by net adjustments to the qualitative factors and increases in unfunded commitments.

Allocation of Trustmark’s $160.3 million ACL on loans HFI represented 1.10% of commercial loans and 1.62% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 1.22% at December 31, 2024. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

• Total revenue expanded to $196.8 million in the fourth quarter
• Net interest income (FTE) totaled $158.4 million in the fourth quarter, up 0.3% linked-quarter
• Net interest margin totaled 3.76% in the fourth quarter, up 7 basis points from the prior quarter
• Noninterest income totaled $41.0 million, up 9.0% from the prior quarter, representing 20.8% of total revenue in the fourth quarter

Revenue in the fourth quarter totaled $196.8 million, an increase of 2.4% from the prior quarter, reflecting growth in net interest income and noninterest income. In 2024, total revenue from continuing operations was $561.0 million while total revenue from adjusted continuing operations⁽¹⁾ was $740.5 million, an increase of $39.2 million, or 5.6%, from the prior year.

Net interest income (FTE) in the fourth quarter totaled $158.4 million, resulting in a net interest margin of 3.76%, up 7 basis points from the prior quarter. The increase in the net interest margin was primarily due to lower costs of interest-bearing liabilities which were offset in part by lower yields on the loans HFI and HFS portfolio.

Noninterest income in the fourth quarter totaled $41.0 million, an increase of $3.4 million from the prior quarter. The linked-quarter change was broad-based and reflected growth in virtually all fee-based businesses.

Mortgage loan production in the fourth quarter totaled $372.2 million, a decrease of 5.1% linked-quarter and an increase of 36.9% year-over-year. Mortgage banking revenue totaled $7.4 million in the fourth quarter, an increase of $1.3 million from the prior quarter and $1.9 million year-over-year. The linked-quarter increase is attributable to a decrease in negative net hedge ineffectiveness. In 2024, mortgage loan production totaled $1.4 billion, down 2.5% from the prior year. Mortgage banking revenue totaled $26.6 million in 2024, up $410 thousand from the prior year.

Wealth management revenue totaled $9.3 million in the fourth quarter, up 0.3% from the prior quarter and 7.6% from the prior year. The year-over-year change is attributable to increased trust management and brokerage revenue. In 2024, wealth management revenue totaled $37.3 million, up $2.2 million, or 6.2%, from the prior year, reflecting expanded investment services revenue driven by growth in assets under management.

Noninterest Expense

• Noninterest expense increased $1.2 million, or 0.9%, linked-quarter
• Salaries and employee benefits expense increased $2.5 million, or 3.8%, linked-quarter
• Total other expense decreased $2.2 million, or 12.7%, linked-quarter

Salaries and employee benefits expense in the fourth quarter totaled $69.2 million, an increase of $2.5 million, or 3.8%, from the prior quarter. The increase was driven principally by year-end incentives. Total services and fees in the fourth quarter totaled $26.7 million, up $1.0 million from the prior quarter reflecting increased professional fees. Total other expense decreased $2.2 million, or 12.7%, linked-quarter to $15.1 million principally due to reduced other real estate expense, net.

⁽¹⁾ Please refer to Consolidated Financial Information, Note 1 – Significant Non-Routine Transactions and Note 7 – Non-GAAP Financial Measures.

Significant Non-Routine Transactions in the Second Quarter

• Completed sale of FBBI, producing a gain on sale of $228.3 million ($171.2 million, net of taxes)
• Restructured investment securities portfolio; sold available for sale securities of $1.6 billion with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes); purchased $1.4 billion of available for sale securities with an average yield of 4.85%
• Sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at time of selection totaling $56.2 million (Mortgage Loan Sale) which generated a loss of $13.4 million ($10.1 million, net of taxes); sale drove a $54.1 million reduction in nonperforming loans
• Exchanged Visa Class B-1 shares for Visa Class B-2 shares and Visa Class C common stock; Visa Class C stock exchange resulted in a gain of $8.1 million ($6.0 million, net of taxes)

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 29, 2025, at 8:30 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 12, 2025, in archived format at the same web address or by calling (877) 344-7529, passcode 2478325.

Trustmark is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Visit trustmark.com for more information.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations or financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, actions by the Board of Governors of the Federal Reserve System (FRB) that impact the level of market interest rates, local, state, national and international economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, changes in our ability to measure the fair value of assets in our portfolio, changes in the level and/or volatility of market interest rates, the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements, the demand for the products and services we offer, potential unexpected adverse outcomes in pending litigation matters, our ability to attract and retain noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
													Linked Quarter							Year over Year
QUARTERLY AVERAGE BALANCES	12/31/2024				9/30/2024				12/31/2023				$ Change				% Change			$ Change				% Change
Securities AFS-taxable	$	1,708,226			$	1,658,999			$	1,986,825			$	49,227			3.0	%		$	(278,599	)		-14.0	%
Securities AFS-nontaxable		—				—				4,246				—			n/m				(4,246	)		-100.0	%
Securities HTM-taxable		1,346,141				1,368,943				1,430,169				(22,802	)		-1.7	%			(84,028	)		-5.9	%
Securities HTM-nontaxable		—				—				340				—			n/m				(340	)		-100.0	%
Total securities		3,054,367				3,027,942				3,421,580				26,425			0.9	%			(367,213	)		-10.7	%
Loans (includes loans held for sale)		13,275,762				13,379,658				13,010,028				(103,896	)		-0.8	%			265,734			2.0	%
Other earning assets		422,083				607,928				670,598				(185,845	)		-30.6	%			(248,515	)		-37.1	%
Total earning assets		16,752,212				17,015,528				17,102,206				(263,316	)		-1.5	%			(349,994	)		-2.0	%
Allowance for credit losses (ACL), loans held
for investment (LHFI)		(157,659	)			(154,476	)			(133,742	)			(3,183	)		-2.1	%			(23,917	)		-17.9	%
Other assets		1,627,890				1,646,241				1,749,069				(18,351	)		-1.1	%			(121,179	)		-6.9	%
Total assets	$	18,222,443			$	18,507,293			$	18,717,533			$	(284,850	)		-1.5	%		$	(495,090	)		-2.6	%
Interest-bearing demand deposits	$	5,493,700			$	5,382,346			$	5,053,935			$	111,354			2.1	%		$	439,765			8.7	%
Savings deposits		3,278,910				3,411,961				3,526,600				(133,051	)		-3.9	%			(247,690	)		-7.0	%
Time deposits		3,265,358				3,393,216				3,427,384				(127,858	)		-3.8	%			(162,026	)		-4.7	%
Total interest-bearing deposits		12,037,968				12,187,523				12,007,919				(149,555	)		-1.2	%			30,049			0.3	%
Fed funds purchased and repurchases		357,798				375,559				403,041				(17,761	)		-4.7	%			(45,243	)		-11.2	%
Other borrowings		218,244				339,417				590,765				(121,173	)		-35.7	%			(372,521	)		-63.1	%
Subordinated notes		123,666				123,611				123,446				55			0.0	%			220			0.2	%
Junior subordinated debt securities		61,856				61,856				61,856				—			0.0	%			—			0.0	%
Total interest-bearing liabilities		12,799,532				13,087,966				13,187,027				(288,434	)		-2.2	%			(387,495	)		-2.9	%
Noninterest-bearing deposits		3,192,358				3,221,516				3,296,351				(29,158	)		-0.9	%			(103,993	)		-3.2	%
Other liabilities		257,990				274,563				641,662				(16,573	)		-6.0	%			(383,672	)		-59.8	%
Total liabilities		16,249,880				16,584,045				17,125,040				(334,165	)		-2.0	%			(875,160	)		-5.1	%
Shareholders' equity		1,972,563				1,923,248				1,592,493				49,315			2.6	%			380,070			23.9	%
Total liabilities and equity	$	18,222,443			$	18,507,293			$	18,717,533			$	(284,850	)		-1.5	%		$	(495,090	)		-2.6	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
													Linked Quarter							Year over Year
PERIOD END BALANCES	12/31/2024				9/30/2024				12/31/2023				$ Change				% Change			$ Change				% Change
Cash and due from banks	$	567,251			$	805,436			$	975,343			$	(238,185	)		-29.6	%		$	(408,092	)		-41.8	%
Fed funds sold and reverse repurchases		—				10,000				—				(10,000	)		-100.0	%			—			n/m
Securities available for sale		1,692,534				1,725,795				1,762,878				(33,261	)		-1.9	%			(70,344	)		-4.0	%
Securities held to maturity		1,335,385				1,358,358				1,426,279				(22,973	)		-1.7	%			(90,894	)		-6.4	%
Loans held for sale (LHFS)		200,307				216,454				184,812				(16,147	)		-7.5	%			15,495			8.4	%
Loans held for investment (LHFI)		13,089,942				13,100,111				12,950,524				(10,169	)		-0.1	%			139,418			1.1	%
ACL LHFI		(160,270	)			(157,929	)			(139,367	)			(2,341	)		-1.5	%			(20,903	)		-15.0	%
Net LHFI		12,929,672				12,942,182				12,811,157				(12,510	)		-0.1	%			118,515			0.9	%
Premises and equipment, net		235,410				236,151				232,229				(741	)		-0.3	%			3,181			1.4	%
Mortgage servicing rights		139,317				125,853				131,870				13,464			10.7	%			7,447			5.6	%
Goodwill		334,605				334,605				334,605				—			0.0	%			—			0.0	%
Identifiable intangible assets		126				153				236				(27	)		-17.6	%			(110	)		-46.6	%
Other real estate		5,917				3,920				6,867				1,997			50.9	%			(950	)		-13.8	%
Operating lease right-of-use assets		34,668				36,034				35,711				(1,366	)		-3.8	%			(1,043	)		-2.9	%
Other assets		677,230				685,431				752,568				(8,201	)		-1.2	%			(75,338	)		-10.0	%
Assets of discontinued operations		—				—				67,634				—			n/m				(67,634	)		-100.0	%
Total assets	$	18,152,422			$	18,480,372			$	18,722,189			$	(327,950	)		-1.8	%		$	(569,767	)		-3.0	%
Deposits:
Noninterest-bearing	$	3,073,565			$	3,142,792			$	3,197,620			$	(69,227	)		-2.2	%		$	(124,055	)		-3.9	%
Interest-bearing		12,034,610				12,098,143				12,372,143				(63,533	)		-0.5	%			(337,533	)		-2.7	%
Total deposits		15,108,175				15,240,935				15,569,763				(132,760	)		-0.9	%			(461,588	)		-3.0	%
Fed funds purchased and repurchases		324,008				365,643				405,745				(41,635	)		-11.4	%			(81,737	)		-20.1	%
Other borrowings		301,541				443,458				483,230				(141,917	)		-32.0	%			(181,689	)		-37.6	%
Subordinated notes		123,702				123,647				123,482				55			0.0	%			220			0.2	%
Junior subordinated debt securities		61,856				61,856				61,856				—			0.0	%			—			0.0	%
ACL on off-balance sheet credit exposures		29,392				28,890				34,057				502			1.7	%			(4,665	)		-13.7	%
Operating lease liabilities		38,698				39,689				39,097				(991	)		-2.5	%			(399	)		-1.0	%
Other liabilities		202,723				196,158				331,085				6,565			3.3	%			(128,362	)		-38.8	%
Liabilities of discontinued operations		—				—				12,027				—			n/m				(12,027	)		-100.0	%
Total liabilities		16,190,095				16,500,276				17,060,342				(310,181	)		-1.9	%			(870,247	)		-5.1	%
Common stock		12,711				12,753				12,725				(42	)		-0.3	%			(14	)		-0.1	%
Capital surplus		157,899				163,156				159,688				(5,257	)		-3.2	%			(1,789	)		-1.1	%
Retained earnings		1,875,376				1,833,232				1,709,157				42,144			2.3	%			166,219			9.7	%
Accumulated other comprehensive
income (loss), net of tax		(83,659	)			(29,045	)			(219,723	)			(54,614	)		n/m				136,064			61.9	%
Total shareholders' equity		1,962,327				1,980,096				1,661,847				(17,769	)		-0.9	%			300,480			18.1	%
Total liabilities and equity	$	18,152,422			$	18,480,372			$	18,722,189			$	(327,950	)		-1.8	%		$	(569,767	)		-3.0	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands except per share data)
(unaudited)
	Quarter Ended											Linked Quarter							Year over Year
INCOME STATEMENTS	12/31/2024			9/30/2024				12/31/2023				$ Change				% Change			$ Change				% Change
Interest and fees on LHFS & LHFI-FTE	$	211,019		$	220,433			$	210,288			$	(9,414	)		-4.3	%		$	731			0.3	%
Interest on securities-taxable		26,196			26,162				15,936				34			0.1	%			10,260			64.4	%
Interest on securities-tax exempt-FTE		—			—				44				—			n/m				(44	)		-100.0	%
Other interest income		5,128			8,302				9,920				(3,174	)		-38.2	%			(4,792	)		-48.3	%
Total interest income-FTE		242,343			254,897				236,188				(12,554	)		-4.9	%			6,155			2.6	%
Interest on deposits		75,941			86,043				80,847				(10,102	)		-11.7	%			(4,906	)		-6.1	%
Interest on fed funds purchased and repurchases		4,036			4,864				5,347				(828	)		-17.0	%			(1,311	)		-24.5	%
Other interest expense		3,922			5,971				9,946				(2,049	)		-34.3	%			(6,024	)		-60.6	%
Total interest expense		83,899			96,878				96,140				(12,979	)		-13.4	%			(12,241	)		-12.7	%
Net interest income-FTE		158,444			158,019				140,048				425			0.3	%			18,396			13.1	%
Provision for credit losses (PCL), LHFI		6,960			7,923				7,585				(963	)		-12.2	%			(625	)		-8.2	%
PCL, off-balance sheet credit exposures		502			(1,375	)			(888	)			1,877			n/m				1,390			n/m
PCL, LHFI sale of 1-4 family mortgage loans		—			—				—				—			n/m				—			n/m
Net interest income after provision-FTE		150,982			151,471				133,351				(489	)		-0.3	%			17,631			13.2	%
Service charges on deposit accounts		11,228			11,272				11,311				(44	)		-0.4	%			(83	)		-0.7	%
Bank card and other fees		8,717			7,931				8,502				786			9.9	%			215			2.5	%
Mortgage banking, net		7,388			6,119				5,519				1,269			20.7	%			1,869			33.9	%
Wealth management		9,319			9,288				8,657				31			0.3	%			662			7.6	%
Other, net		4,298			2,952				2,577				1,346			45.6	%			1,721			66.8	%
Securities gains (losses), net		—			—				39				—			n/m				(39	)		-100.0	%
Total noninterest income (loss)		40,950			37,562				36,605				3,388			9.0	%			4,345			11.9	%
Salaries and employee benefits		69,223			66,691				69,326				2,532			3.8	%			(103	)		-0.1	%
Services and fees		26,692			25,724				27,478				968			3.8	%			(786	)		-2.9	%
Net occupancy-premises		7,195			7,398				7,144				(203	)		-2.7	%			51			0.7	%
Equipment expense		6,208			6,141				6,457				67			1.1	%			(249	)		-3.9	%
Litigation settlement expense		—			—				—				—			n/m				—			n/m
Other expense		15,112			17,316				15,790				(2,204	)		-12.7	%			(678	)		-4.3	%
Total noninterest expense		124,430			123,270				126,195				1,160			0.9	%			(1,765	)		-1.4	%
Income (loss) from continuing operations
(cont. ops) before income taxes and tax eq adj		67,502			65,763				43,761				1,739			2.6	%			23,741			54.3	%
Tax equivalent adjustment		2,596			3,305				3,306				(709	)		-21.5	%			(710	)		-21.5	%
Income (loss) from cont. ops before income taxes		64,906			62,458				40,455				2,448			3.9	%			24,451			60.4	%
Income taxes from cont. ops		8,594			11,128				6,567				(2,534	)		-22.8	%			2,027			30.9	%
Income (loss) from cont. ops		56,312			51,330				33,888				4,982			9.7	%			22,424			66.2	%
Income from discontinued operations
(discont. ops) before income taxes		—			—				2,965				—			n/m				(2,965	)		-100.0	%
Income taxes from discont. ops		—			—				730				—			n/m				(730	)		-100.0	%
Income from discont. ops		—			—				2,235				—			n/m				(2,235	)		-100.0	%
Net income	$	56,312		$	51,330			$	36,123			$	4,982			9.7	%		$	20,189			55.9	%
Per share data (1)
Basic earnings (loss) per share from cont. ops	$	0.92		$	0.84			$	0.55			$	0.08			9.5	%		$	0.37			67.3	%
Basic earnings per share from discont. ops	$	—		$	—			$	0.04			$	—			n/m			$	(0.04	)		-100.0	%
Basic earnings per share - total	$	0.92		$	0.84			$	0.59			$	0.08			9.5	%		$	0.33			55.9	%
Diluted earnings (loss) per share from cont. ops	$	0.92		$	0.84			$	0.55			$	0.08			9.5	%		$	0.37			67.3	%
Diluted earnings per share from discont. ops	$	—		$	—			$	0.04			$	—			n/m			$	(0.04	)		-100.0	%
Diluted earnings per share - total	$	0.92		$	0.84			$	0.59			$	0.08			9.5	%		$	0.33			55.9	%
Dividends per share	$	0.23		$	0.23			$	0.23			$	—			0.0	%		$	—			0.0	%
Weighted average shares outstanding
Basic		61,101,954			61,206,599				61,070,481
Diluted		61,367,825			61,448,410				61,296,840
Period end shares outstanding		61,008,023			61,206,606				61,071,173
(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
	Quarter Ended												Linked Quarter							Year over Year
NONPERFORMING ASSETS	12/31/2024				9/30/2024				12/31/2023				$ Change				% Change			$ Change				% Change
Nonaccrual LHFI
Alabama	$	18,601			$	25,835			$	23,271			$	(7,234	)		-28.0	%		$	(4,670	)		-20.1	%
Florida		305				111				170				194			n/m				135			79.4	%
Mississippi (1)		42,203				31,536				54,615				10,667			33.8	%			(12,412	)		-22.7	%
Tennessee (2)		2,431				3,180				1,802				(749	)		-23.6	%			629			34.9	%
Texas		16,569				13,163				20,150				3,406			25.9	%			(3,581	)		-17.8	%
Total nonaccrual LHFI		80,109				73,825				100,008				6,284			8.5	%			(19,899	)		-19.9	%
Other real estate
Alabama		170				170				1,397				—			0.0	%			(1,227	)		-87.8	%
Florida		—				—				—				—			n/m				—			n/m
Mississippi (1)		2,407				1,772				1,242				635			35.8	%			1,165			93.8	%
Tennessee (2)		1,079				—				—				1,079			n/m				1,079			n/m
Texas		2,261				1,978				4,228				283			14.3	%			(1,967	)		-46.5	%
Total other real estate		5,917				3,920				6,867				1,997			50.9	%			(950	)		-13.8	%
Total nonperforming assets	$	86,026			$	77,745			$	106,875			$	8,281			10.7	%		$	(20,849	)		-19.5	%
LOANS PAST DUE OVER 90 DAYS
LHFI	$	4,092			$	5,352			$	5,790			$	(1,260	)		-23.5	%		$	(1,698	)		-29.3	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	71,255			$	63,703			$	51,243			$	7,552			11.9	%		$	20,012			39.1	%
	Quarter Ended												Linked Quarter							Year over Year
ACL LHFI	12/31/2024				9/30/2024				12/31/2023				$ Change				% Change			$ Change				% Change
Beginning Balance	$	157,929			$	154,685			$	134,031			$	3,244			2.1	%		$	23,898			17.8	%
PCL, LHFI		6,960				7,923				7,585				(963	)		-12.2	%			(625	)		-8.2	%
PCL, LHFI sale of 1-4 family mortgage loans		—				—				—				—			n/m				—			n/m
Charge-offs, sale of 1-4 family mortgage loans		—				—				—				—			n/m				—			n/m
Charge-offs		(7,730	)			(7,142	)			(4,250	)			(588	)		-8.2	%			(3,480	)		-81.9	%
Recoveries		3,111				2,463				2,001				648			26.3	%			1,110			55.5	%
Net (charge-offs) recoveries		(4,619	)			(4,679	)			(2,249	)			60			1.3	%			(2,370	)		n/m
Ending Balance	$	160,270			$	157,929			$	139,367			$	2,341			1.5	%		$	20,903			15.0	%
NET (CHARGE-OFFS) RECOVERIES
Alabama	$	(3,608	)		$	(3,098	)		$	(299	)		$	(510	)		-16.5	%		$	(3,309	)		n/m
Florida		8				595				180				(587	)		-98.7	%			(172	)		-95.6	%
Mississippi (1)		(1,319	)			(1,881	)			(1,943	)			562			29.9	%			624			32.1	%
Tennessee (2)		(208	)			(296	)			(193	)			88			29.7	%			(15	)		-7.8	%
Texas		508				1				6				507			n/m				502			n/m
Total net (charge-offs) recoveries	$	(4,619	)		$	(4,679	)		$	(2,249	)		$	60			1.3	%		$	(2,370	)		n/m
(1) Mississippi includes Central and Southern Mississippi Regions.
(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
		Quarter Ended																				Year Ended
AVERAGE BALANCES		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Securities AFS-taxable		$	1,708,226			$	1,658,999			$	1,866,227			$	1,927,619			$	1,986,825			$	1,789,685			$	2,090,201
Securities AFS-nontaxable			—				—				—				—				4,246				—				4,657
Securities HTM-taxable			1,346,141				1,368,943				1,421,246				1,418,476				1,430,169				1,388,531				1,454,450
Securities HTM-nontaxable			—				—				112				340				340				112				1,854
Total securities			3,054,367				3,027,942				3,287,585				3,346,435				3,421,580				3,178,328				3,551,162
Loans (includes loans held for sale)			13,275,762				13,379,658				13,309,127				13,169,805				13,010,028				13,283,829				12,801,531
Other earning assets			422,083				607,928				592,735				571,329				670,598				548,336				729,673
Total earning assets			16,752,212				17,015,528				17,189,447				17,087,569				17,102,206				17,010,493				17,082,366
ACL LHFI			(157,659	)			(154,476	)			(143,245	)			(138,711	)			(133,742	)			(148,564	)			(125,942	)
Other assets			1,627,890				1,646,241				1,740,307				1,730,521				1,749,069				1,685,971				1,718,058
Total assets		$	18,222,443			$	18,507,293			$	18,786,509			$	18,679,379			$	18,717,533			$	18,547,900			$	18,674,482
Interest-bearing demand deposits		$	5,493,700			$	5,382,346			$	5,222,369			$	5,291,779			$	5,053,935			$	5,348,043			$	4,871,977
Savings deposits			3,278,910				3,411,961				3,653,966				3,686,027				3,526,600				3,506,829				3,838,791
Time deposits			3,265,358				3,393,216				3,346,046				3,321,601				3,427,384				3,331,543				2,691,682
Total interest-bearing deposits			12,037,968				12,187,523				12,222,381				12,299,407				12,007,919				12,186,415				11,402,450
Fed funds purchased and repurchases			357,798				375,559				434,760				428,127				403,041				398,884				410,945
Other borrowings			218,244				339,417				534,350				463,459				590,765				388,266				984,315
Subordinated notes			123,666				123,611				123,556				123,501				123,446				123,584				123,364
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856				61,856				61,856
Total interest-bearing liabilities			12,799,532				13,087,966				13,376,903				13,376,350				13,187,027				13,159,005				12,982,930
Noninterest-bearing deposits			3,192,358				3,221,516				3,183,524				3,120,566				3,296,351				3,179,641				3,532,134
Other liabilities			257,990				274,563				498,593				505,942				641,662				383,627				589,320
Total liabilities			16,249,880				16,584,045				17,059,020				17,002,858				17,125,040				16,722,273				17,104,384
Shareholders' equity			1,972,563				1,923,248				1,727,489				1,676,521				1,592,493				1,825,627				1,570,098
Total liabilities and equity		$	18,222,443			$	18,507,293			$	18,786,509			$	18,679,379			$	18,717,533			$	18,547,900			$	18,674,482
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
PERIOD END BALANCES		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
Cash and due from banks		$	567,251			$	805,436			$	822,141			$	606,061			$	975,343
Fed funds sold and reverse repurchases			—				10,000				—				—				—
Securities available for sale			1,692,534				1,725,795				1,621,659				1,702,299				1,762,878
Securities held to maturity			1,335,385				1,358,358				1,380,487				1,415,025				1,426,279
LHFS			200,307				216,454				185,698				172,937				184,812
LHFI			13,089,942				13,100,111				13,155,418				13,057,943				12,950,524
ACL LHFI			(160,270	)			(157,929	)			(154,685	)			(142,998	)			(139,367	)
Net LHFI			12,929,672				12,942,182				13,000,733				12,914,945				12,811,157
Premises and equipment, net			235,410				236,151				232,681				232,630				232,229
Mortgage servicing rights			139,317				125,853				136,658				138,044				131,870
Goodwill			334,605				334,605				334,605				334,605				334,605
Identifiable intangible assets			126				153				181				208				236
Other real estate			5,917				3,920				6,586				7,620				6,867
Operating lease right-of-use assets			34,668				36,034				36,925				34,324				35,711
Other assets			677,230				685,431				694,133				744,821				752,568
Assets of discontinued operations			—				—				—				73,093				67,634
Total assets		$	18,152,422			$	18,480,372			$	18,452,487			$	18,376,612			$	18,722,189
Deposits:
Noninterest-bearing		$	3,073,565			$	3,142,792			$	3,153,506			$	3,039,652			$	3,197,620
Interest-bearing			12,034,610				12,098,143				12,309,382				12,298,905				12,372,143
Total deposits			15,108,175				15,240,935				15,462,888				15,338,557				15,569,763
Fed funds purchased and repurchases			324,008				365,643				314,121				393,215				405,745
Other borrowings			301,541				443,458				336,687				482,027				483,230
Subordinated notes			123,702				123,647				123,592				123,537				123,482
Junior subordinated debt securities			61,856				61,856				61,856				61,856				61,856
ACL on off-balance sheet credit exposures			29,392				28,890				30,265				33,865				34,057
Operating lease liabilities			38,698				39,689				40,517				37,792				39,097
Other liabilities			202,723				196,158				203,420				207,583				331,085
Liabilities of discontinued operations			—				—				—				15,581				12,027
Total liabilities			16,190,095				16,500,276				16,573,346				16,694,013				17,060,342
Common stock			12,711				12,753				12,753				12,747				12,725
Capital surplus			157,899				163,156				161,834				160,521				159,688
Retained earnings			1,875,376				1,833,232				1,796,111				1,736,485				1,709,157
Accumulated other comprehensive income (loss),
net of tax			(83,659	)			(29,045	)			(91,557	)			(227,154	)			(219,723	)
Total shareholders' equity			1,962,327				1,980,096				1,879,141				1,682,599				1,661,847
Total liabilities and equity		$	18,152,422			$	18,480,372			$	18,452,487			$	18,376,612			$	18,722,189
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands except per share data)
(unaudited)
		Quarter Ended																			Year Ended
INCOME STATEMENTS		12/31/2024			9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Interest and fees on LHFS & LHFI-FTE		$	211,019		$	220,433			$	216,399			$	209,456			$	210,288			$	857,307			$	788,719
Interest on securities-taxable			26,196			26,162				17,929				15,634				15,936				85,921				66,100
Interest on securities-tax exempt-FTE			—			—				1				4				44				5				263
Other interest income			5,128			8,302				8,126				8,111				9,920				29,667				37,215
Total interest income-FTE			242,343			254,897				242,455				233,205				236,188				972,900				892,297
Interest on deposits			75,941			86,043				83,681				83,716				80,847				329,381				245,951
Interest on fed funds purchased and repurchases			4,036			4,864				5,663				5,591				5,347				20,154				20,419
Other interest expense			3,922			5,971				8,778				7,703				9,946				26,374				59,584
Total interest expense			83,899			96,878				98,122				97,010				96,140				375,909				325,954
Net interest income-FTE			158,444			158,019				144,333				136,195				140,048				596,991				566,343
PCL, LHFI			6,960			7,923				14,696				7,708				7,585				37,287				27,362
PCL, off-balance sheet credit exposures			502			(1,375	)			(3,600	)			(192	)			(888	)			(4,665	)			(2,781	)
PCL, LHFI sale of 1-4 family mortgage loans			—			—				8,633				—				—				8,633				—
Net interest income after provision-FTE			150,982			151,471				124,604				128,679				133,351				555,736				541,762
Service charges on deposit accounts			11,228			11,272				10,924				10,958				11,311				44,382				43,416
Bank card and other fees			8,717			7,931				9,225				7,428				8,502				33,301				33,439
Mortgage banking, net			7,388			6,119				4,204				8,915				5,519				26,626				26,216
Wealth management			9,319			9,288				9,692				8,952				8,657				37,251				35,092
Other, net			4,298			2,952				7,461				3,102				2,577				17,813				10,231
Securities gains (losses), net			—			—				(182,792	)			—				39				(182,792	)			39
Total noninterest income (loss)			40,950			37,562				(141,286	)			39,355				36,605				(23,419	)			148,433
Salaries and employee benefits			69,223			66,691				64,838				65,487				69,326				266,239				268,270
Services and fees			26,692			25,724				24,743				24,431				27,478				101,590				107,805
Net occupancy-premises			7,195			7,398				7,265				7,270				7,144				29,128				28,507
Equipment expense			6,208			6,141				6,241				6,325				6,457				24,915				25,844
Litigation settlement expense			—			—				—				—				—				—				6,500
Other expense			15,112			17,316				15,239				16,151				15,790				63,818				58,770
Total noninterest expense			124,430			123,270				118,326				119,664				126,195				485,690				495,696
Income (loss) from continuing operations
(cont. ops) before income taxes and tax eq adj			67,502			65,763				(135,008	)			48,370				43,761				46,627				194,499
Tax equivalent adjustment			2,596			3,305				3,304				3,365				3,306				12,570				13,465
Income (loss) from cont. ops before
income taxes			64,906			62,458				(138,312	)			45,005				40,455				34,057				181,034
Income taxes from cont. ops			8,594			11,128				(37,707	)			6,832				6,567				(11,153	)			27,744
Income (loss) from cont. ops			56,312			51,330				(100,605	)			38,173				33,888				45,210				153,290
Income from discontinued operations
(discont. ops) before income taxes		—			—					232,640				4,512				2,965				237,152				16,302
Income taxes from discont. ops			—			—				58,203				1,150				730				59,353				4,103
Income from discont. ops			—			—				174,437				3,362				2,235				177,799				12,199
Net income		$	56,312		$	51,330			$	73,832			$	41,535			$	36,123			$	223,009			$	165,489
Per share data (1)
Basic earnings (loss) per share from cont. ops		$	0.92		$	0.84			$	(1.64	)		$	0.62			$	0.55			$	0.74			$	2.51
Basic earnings per share from discont. ops		$	—		$	—			$	2.85			$	0.05			$	0.04			$	2.91			$	0.20
Basic earnings per share - total		$	0.92		$	0.84			$	1.21			$	0.68			$	0.59			$	3.65			$	2.71
Diluted earnings (loss) per share from cont. ops		$	0.92		$	0.84			$	(1.64	)		$	0.62			$	0.55			$	0.74			$	2.50
Diluted earnings per share from discont. ops		$	—		$	—			$	2.84			$	0.05			$	0.04			$	2.90			$	0.20
Diluted earnings per share - total		$	0.92		$	0.84			$	1.20			$	0.68			$	0.59			$	3.63			$	2.70
Dividends per share		$	0.23		$	0.23			$	0.23			$	0.23			$	0.23			$	0.92			$	0.92
Weighted average shares outstanding
Basic			61,101,954			61,206,599				61,196,820				61,128,425				61,070,481				61,158,427				61,053,849
Diluted			61,367,825			61,448,410				61,415,957				61,348,364				61,296,840				61,384,221				61,230,621
Period end shares outstanding			61,008,023			61,206,606				61,205,969				61,178,366				61,071,173				61,008,023				61,071,173
(1) Due to rounding, earnings (loss) per share from continuing operations and discontinued operations may not sum to earnings per share from net income.
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
($ in thousands)
(unaudited)
		Quarter Ended
NONPERFORMING ASSETS		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
Nonaccrual LHFI
Alabama		$	18,601			$	25,835			$	26,222			$	23,261			$	23,271
Florida			305				111				614				585				170
Mississippi (1)			42,203				31,536				14,773				59,059				54,615
Tennessee (2)			2,431				3,180				2,084				1,800				1,802
Texas			16,569				13,163				599				13,646				20,150
Total nonaccrual LHFI			80,109				73,825				44,292				98,351				100,008
Other real estate
Alabama			170				170				485				1,050				1,397
Florida			—				—				—				71				—
Mississippi (1)			2,407				1,772				1,787				2,870				1,242
Tennessee (2)			1,079				—				86				86				—
Texas			2,261				1,978				4,228				3,543				4,228
Total other real estate			5,917				3,920				6,586				7,620				6,867
Total nonperforming assets		$	86,026			$	77,745			$	50,878			$	105,971			$	106,875
LOANS PAST DUE OVER 90 DAYS
LHFI		$	4,092			$	5,352			$	5,413			$	5,243			$	5,790
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)		$	71,255			$	63,703			$	58,079			$	56,530			$	51,243
		Quarter Ended																				Year Ended
ACL LHFI		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Beginning Balance		$	157,929			$	154,685			$	142,998			$	139,367			$	134,031			$	139,367			$	120,214
PCL, LHFI			6,960				7,923				14,696				7,708				7,585				37,287				27,362
PCL, LHFI sale of 1-4 family mortgage loans			—				—				8,633				—				—				8,633				—
Charge-offs, sale of 1-4 family mortgage loans			—				—				(8,633	)			—				—				(8,633	)			—
Charge-offs			(7,730	)			(7,142	)			(5,120	)			(6,324	)			(4,250	)			(26,316	)			(17,515	)
Recoveries			3,111				2,463				2,111				2,247				2,001				9,932				9,306
Net (charge-offs) recoveries			(4,619	)			(4,679	)			(11,642	)			(4,077	)			(2,249	)			(25,017	)			(8,209	)
Ending Balance		$	160,270			$	157,929			$	154,685			$	142,998			$	139,367			$	160,270			$	139,367
NET (CHARGE-OFFS) RECOVERIES
Alabama		$	(3,608	)		$	(3,098	)		$	59			$	(341	)		$	(299	)		$	(6,988	)		$	(873	)
Florida			8				595				4				277				180				884				130
Mississippi (1)			(1,319	)			(1,881	)			(9,112	)			(1,489	)			(1,943	)			(13,801	)			(5,347	)
Tennessee (2)			(208	)			(296	)			(122	)			(179	)			(193	)			(805	)			1,644
Texas			508				1				(2,471	)			(2,345	)			6				(4,307	)			(3,763	)
Total net (charge-offs) recoveries		$	(4,619	)		$	(4,679	)		$	(11,642	)		$	(4,077	)		$	(2,249	)		$	(25,017	)		$	(8,209	)
(1) Mississippi includes Central and Southern Mississippi Regions.
(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 2024
(unaudited)
		Quarter Ended																				Year Ended
FINANCIAL RATIOS AND OTHER DATA		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024			12/31/2023
Return on average equity from continuing operations			11.36	%			10.62	%			-23.42	%			9.16	%			8.44	%		2.48	%		9.76	%
Return on average equity from adjusted
continuing operations (1)			11.36	%			10.62	%			9.06	%			9.16	%			8.68	%		10.34	%		10.17	%
Return on average equity - total			11.36	%			10.62	%			17.19	%			9.96	%			9.00	%		12.22	%		10.54	%
Return on average tangible equity from
continuing operations			13.68	%			12.86	%			-29.05	%			11.45	%			10.70	%		3.04	%		12.43	%
Return on average tangible equity from adjusted
continuing operations (1)			13.68	%			12.86	%			11.14	%			11.45	%			10.98	%		12.71	%		12.95	%
Return on average tangible equity - total			13.68	%			12.86	%			21.91	%			12.98	%			11.92	%		15.20	%		14.04	%
Return on average assets from continuing operations			1.23	%			1.10	%			-2.16	%			0.83	%			0.72	%		0.24	%		0.82	%
Return on average assets from adjusted
continuing operations (1)			1.23	%			1.10	%			0.87	%			0.83	%			0.74	%		1.01	%		0.86	%
Return on average assets - total			1.23	%			1.10	%			1.58	%			0.89	%			0.77	%		1.20	%		0.89	%
Interest margin - Yield - FTE			5.76	%			5.96	%			5.67	%			5.49	%			5.48	%		5.72	%		5.22	%
Interest margin - Cost			1.99	%			2.27	%			2.30	%			2.28	%			2.23	%		2.21	%		1.91	%
Net interest margin - FTE			3.76	%			3.69	%			3.38	%			3.21	%			3.25	%		3.51	%		3.32	%
Efficiency ratio (2)			61.77	%			60.99	%			63.81	%			66.90	%			69.76	%		63.26	%		67.26	%
Full-time equivalent employees			2,500				2,500				2,515				2,712				2,757
CREDIT QUALITY RATIOS
Net (recoveries) charge-offs (excl sale of
1-4 family mortgage loans) / average loans			0.14	%			0.14	%			0.09	%			0.12	%			0.07	%		0.12	%		0.06	%
PCL, LHFI (excl PCL, LHFI sale of
1-4 family mortgage loans) / average loans			0.21	%			0.24	%			0.44	%			0.24	%			0.23	%		0.28	%		0.21	%
Nonaccrual LHFI / (LHFI + LHFS)			0.60	%			0.55	%			0.33	%			0.74	%			0.76	%
Nonperforming assets / (LHFI + LHFS)			0.65	%			0.58	%			0.38	%			0.80	%			0.81	%
Nonperforming assets / (LHFI + LHFS
+ other real estate)			0.65	%			0.58	%			0.38	%			0.80	%			0.81	%
ACL LHFI / LHFI			1.22	%			1.21	%			1.18	%			1.10	%			1.08	%
ACL LHFI-commercial / commercial LHFI			1.10	%			1.08	%			1.05	%			0.93	%			0.85	%
ACL LHFI-consumer / consumer and
home mortgage LHFI			1.62	%			1.64	%			1.59	%			1.63	%			1.81	%
ACL LHFI / nonaccrual LHFI			200.06	%			213.92	%			349.24	%			145.39	%			139.36	%
ACL LHFI / nonaccrual LHFI
(excl individually analyzed loans)			341.20	%			497.27	%			840.20	%			235.29	%			249.31	%
CAPITAL RATIOS
Total equity / total assets			10.81	%			10.71	%			10.18	%			9.16	%			8.88	%
Tangible equity / tangible assets			9.13	%			9.07	%			8.52	%			7.47	%			7.22	%
Tangible equity / risk-weighted assets			10.86	%			10.97	%			10.18	%			8.83	%			8.76	%
Tier 1 leverage ratio			9.99	%			9.65	%			9.29	%			8.76	%			8.62	%
Common equity tier 1 capital ratio			11.54	%			11.30	%			10.92	%			10.12	%			10.04	%
Tier 1 risk-based capital ratio			11.94	%			11.70	%			11.31	%			10.51	%			10.44	%
Total risk-based capital ratio			13.97	%			13.71	%			13.29	%			12.42	%			12.29	%
STOCK PERFORMANCE
Market value-Close		$	35.37			$	31.82			$	30.04			$	28.11			$	27.88
Book value		$	32.17			$	32.35			$	30.70			$	27.50			$	27.21
Tangible book value		$	26.68			$	26.88			$	25.23			$	22.03			$	21.73
(1) Adjusted continuing operations excludes significant non-routine transactions. See Note 7 - Non-GAAP Financials Measures in the Notes to the Consolidated Financials.
(2) See Note 7 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
See Notes to Consolidated Financial

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands) (unaudited)
Note 1 - Significant Non-Routine Transactions   Trustmark completed the following significant non-routine transactions during the second quarter of 2024:   On May 31, 2024, Trustmark National Bank closed the sale of its wholly owned subsidiary, Fisher Brown Bottrell Insurance, Inc., (FBBI) to Marsh & McLennan Agency LLC, consistent with the terms as previously announced on April 23, 2024. Trustmark National Bank is a wholly owned subsidiary of Trustmark Corporation. Trustmark recognized a gain on the sale of $228.3 million ($171.2 million, net of taxes) in income from discontinued operations. The operations of FBBI are also included in discontinued operations for the current and prior periods. Trustmark restructured its investment securities portfolio by selling $1.561 billion of available for sale securities with an average yield of 1.36%, which generated a loss of $182.8 million ($137.1 million, net of taxes) and was recorded to noninterest income in securities gains (losses), net. Trustmark purchased $1.378 billion of available for sale securities with an average yield of 4.85%. Trustmark sold a portfolio of 1-4 family mortgage loans that were three payments delinquent and/or nonaccrual at the time of selection totaling $56.2 million, which resulted in a loss of $13.4 million ($10.1 million, net of taxes). The portion of the loss related to credit totaled $8.6 million and was recorded as adjustments to charge-offs and the provision for credit losses. The noncredit-related portion of the loss totaled $4.8 million and was recorded to noninterest income in other, net. On April 8, 2024, Visa commenced an initial exchange offer expiring on May 3, 2024, for any and all outstanding shares of Visa Class B-1 common stock (Visa B-1 shares). Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (Visa B-2 shares) and Visa Class C common stock (Visa C shares) in exchange for Visa B-1 shares that are validly tendered and accepted for exchange by Visa. TNB tendered its 38.7 thousand Visa B-1 shares, which was accepted by Visa. In exchange for each Visa B-1 share that was validly tendered and accepted for exchange by Visa, TNB received 50.0% of a newly issued Visa B-2 share and newly issued Visa C shares equivalent in value to 50.0% of a Visa B-1 share. The Visa C shares that were received by TNB were recognized at fair value, which resulted in a gain of $8.1 million ($6.0 million, net of taxes) and recorded to noninterest income in other, net during the second quarter of 2024. During the third quarter of 2024, TNB sold all of the Visa C shares for approximately the same carrying value at June 30, 2024. The Visa B-2 shares were recorded at their nominal carrying value.   Note 2 - Securities Available for Sale and Held to Maturity   The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:
		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities		$	202,669			$	202,638			$	172,955			$	372,424			$	372,368
U.S. Government agency obligations			38,807				19,335				—				5,594				5,792
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			28,411				25,798				23,489				22,232				23,135
Issued by FNMA and FHLMC			1,070,538				1,105,310				1,060,869				1,129,521				1,176,798
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			—				—				—				79,099				86,074
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			352,109				372,714				364,346				93,429				98,711
Total securities available for sale		$	1,692,534			$	1,725,795			$	1,621,659			$	1,702,299			$	1,762,878
SECURITIES HELD TO MATURITY
U.S. Treasury securities		$	29,842			$	29,648			$	29,455			$	29,261			$	29,068
Obligations of states and political subdivisions			—				—				—				340				340
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA			16,218				17,773				17,998				18,387				13,005
Issued by FNMA and FHLMC			423,372				436,177				449,781				461,457				469,593
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			123,685				131,348				138,951				146,447				154,466
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA			742,268				743,412				744,302				759,133				759,807
Total securities held to maturity		$	1,335,385			$	1,358,358			$	1,380,487			$	1,415,025			$	1,426,279

At December 31, 2024, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity transferred from securities available for sale totaled $46.6 million.

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 100.0% of the portfolio in U.S. Treasury securities, GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands) (unaudited)   Note 3 – Loan Composition   LHFI consisted of the following during the periods presented:
LHFI BY TYPE		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
Loans secured by real estate:
Construction, land development and other land loans		$	1,417,148			$	1,588,256			$	1,638,972			$	1,539,461			$	1,510,679
Secured by 1-4 family residential properties			2,949,543				2,895,006				2,878,295				2,891,481				2,904,715
Secured by nonfarm, nonresidential properties			3,533,282				3,582,552				3,598,647				3,543,235				3,489,434
Other real estate secured			1,633,830				1,475,798				1,344,968				1,384,610				1,312,551
Commercial and industrial loans			1,840,722				1,767,079				1,880,607				1,922,711				1,922,910
Consumer loans			151,443				149,436				153,316				156,430				161,725
State and other political subdivision loans			969,836				996,002				1,053,015				1,052,844				1,088,466
Other loans and leases			594,138				645,982				607,598				567,171				560,044
LHFI			13,089,942				13,100,111				13,155,418				13,057,943				12,950,524
ACL LHFI			(160,270	)			(157,929	)			(154,685	)			(142,998	)			(139,367	)
Net LHFI		$	12,929,672			$	12,942,182			$	13,000,733			$	12,914,945			$	12,811,157

The following table presents the LHFI composition based upon the region where the loan was originated and reflects each region’s diversified mix of loans:
	December 31, 2024
LHFI - COMPOSITION BY REGION	Total				Alabama				Florida				Georgia				Mississippi (Central and Southern Regions)				Tennessee (Memphis, TN and Northern MS Regions)				Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,417,148			$	584,880			$	34,666			$	102,765			$	322,924			$	42,571			$	329,342
Secured by 1-4 family residential properties		2,949,543				153,836				59,418				—				2,610,722				85,913				39,654
Secured by nonfarm, nonresidential properties		3,533,282				1,023,992				192,212				74,794				1,481,810				126,296				634,178
Other real estate secured		1,633,830				815,394				1,646				—				387,663				1,144				427,983
Commercial and industrial loans		1,840,722				521,451				20,165				219,243				702,108				135,090				242,665
Consumer loans		151,443				21,663				7,926				—				94,973				14,782				12,099
State and other political subdivision loans		969,836				70,447				67,563				—				731,179				22,766				77,881
Other loans and leases		594,138				38,001				5,281				245,635				200,825				64,397				39,999
Loans	$	13,089,942			$	3,229,664			$	388,877			$	642,437			$	6,532,204			$	492,959			$	1,803,801
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	60,977			$	24,292			$	6,498			$	94			$	20,100			$	2,799			$	7,194
Development		104,694				54,968				—				—				18,008				12,275				19,443
Unimproved land		102,857				17,206				12,074				—				25,343				9,892				38,342
1-4 family construction		318,716				156,679				8,397				15,140				84,260				17,057				37,183
Other construction		829,904				331,735				7,697				87,531				175,213				548				227,180
Construction, land development and other land loans	$	1,417,148			$	584,880			$	34,666			$	102,765			$	322,924			$	42,571			$	329,342

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands) (unaudited)
Note 3 – Loan Composition (continued)
		December 31, 2024
		Total				Alabama				Florida				Georgia				Mississippi (Central and Southern Regions)				Tennessee (Memphis, TN and Northern MS Regions)				Texas
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail		$	309,752			$	99,486			$	21,718			$	—			$	93,786			$	18,743			$	76,019
Office			242,741				92,612				18,965				—				96,541				1,330				33,293
Hotel/motel			281,946				145,483				43,816				—				68,604				24,043				—
Mini-storage			145,027				33,789				1,598				6,537				90,748				616				11,739
Industrial			522,204				98,101				17,814				68,257				176,775				2,523				158,734
Health care			152,396				124,873				674				—				24,342				323				2,184
Convenience stores			23,627				2,658				399				—				12,693				207				7,670
Nursing homes/senior living			384,232				140,569				—				—				143,539				4,186				95,938
Other			100,983				28,242				7,613				—				49,094				7,699				8,335
Total non-owner occupied loans			2,162,908				765,813				112,597				74,794				756,122				59,670				393,912
Owner-occupied:
Office			150,115				49,734				34,049				—				38,489				10,216				17,627
Churches			50,304				11,726				3,844				—				29,223				3,130				2,381
Industrial warehouses			176,506				12,582				8,323				—				48,821				12,489				94,291
Health care			121,319				10,786				8,064				—				83,381				2,195				16,893
Convenience stores			109,568				10,907				2,092				—				56,605				—				39,964
Retail			67,668				8,449				12,992				—				31,750				6,399				8,078
Restaurants			52,385				3,466				2,745				—				25,491				16,413				4,270
Auto dealerships			40,377				4,113				174				—				21,105				14,985				—
Nursing homes/senior living			480,393				130,474				—				—				323,911				—				26,008
Other			121,739				15,942				7,332				—				66,912				799				30,754
Total owner-occupied loans			1,370,374				258,179				79,615				—				725,688				66,626				240,266
Loans secured by nonfarm, nonresidential properties		$	3,533,282			$	1,023,992			$	192,212			$	74,794			$	1,481,810			$	126,296			$	634,178

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities   The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:
		Quarter Ended																				Year Ended
		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Securities – taxable			3.41	%			3.44	%			2.19	%			1.88	%			1.85	%			2.70	%			1.86	%
Securities – nontaxable			—				—				3.59	%			4.73	%			3.81	%			4.46	%			4.04	%
Securities – total			3.41	%			3.44	%			2.19	%			1.88	%			1.85	%			2.70	%			1.87	%
LHFI & LHFS			6.32	%			6.55	%			6.54	%			6.40	%			6.41	%			6.45	%			6.16	%
Other earning assets			4.83	%			5.43	%			5.51	%			5.71	%			5.87	%			5.41	%			5.10	%
Total earning assets			5.76	%			5.96	%			5.67	%			5.49	%			5.48	%			5.72	%			5.22	%
Interest-bearing deposits			2.51	%			2.81	%			2.75	%			2.74	%			2.67	%			2.70	%			2.16	%
Fed funds purchased & repurchases			4.49	%			5.15	%			5.24	%			5.25	%			5.26	%			5.05	%			4.97	%
Other borrowings			3.86	%			4.53	%			4.91	%			4.78	%			5.08	%			4.60	%			5.09	%
Total interest-bearing liabilities			2.61	%			2.94	%			2.95	%			2.92	%			2.89	%			2.86	%			2.51	%
Total Deposits			1.98	%			2.22	%			2.18	%			2.18	%			2.10	%			2.14	%			1.65	%
Net interest margin			3.76	%			3.69	%			3.38	%			3.21	%			3.25	%			3.51	%			3.32	%

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands) (unaudited)
Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities (continued)   Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets.   The net interest margin increased 7 basis points when compared to the third quarter of 2024, totaling 3.76% for the fourth quarter of 2024, primarily due to decreased costs of interest-bearing liabilities which were partially offset by the decrease in the yield for the loans held for investment and held for sale portfolio.   Note 5 – Mortgage Banking   Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net negative hedge ineffectiveness of $1.1 million during the fourth quarter of 2024.   The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:
		Quarter Ended																				Year Ended
		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Mortgage servicing income, net		$	7,161			$	7,127			$	6,993			$	6,934			$	6,731			$	28,215			$	27,196
Change in fair value-MSR from runoff			(3,118	)			(3,154	)			(3,447	)			(1,926	)			(2,972	)			(11,645	)			(10,030	)
Gain on sales of loans, net			4,470				4,648				5,151				5,009				3,913				19,278				15,345
Mortgage banking income before hedge
ineffectiveness			8,513				8,621				8,697				10,017				7,672				35,848				32,511
Change in fair value-MSR from market changes			12,710				(10,406	)			(1,626	)			5,123				(10,224	)			5,801				(1,489	)
Change in fair value of derivatives			(13,835	)			7,904				(2,867	)			(6,225	)			8,071				(15,023	)			(4,806	)
Net positive (negative) hedge ineffectiveness			(1,125	)			(2,502	)			(4,493	)			(1,102	)			(2,153	)			(9,222	)			(6,295	)
Mortgage banking, net		$	7,388			$	6,119			$	4,204			$	8,915			$	5,519			$	26,626			$	26,216

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands) (unaudited)
Note 6 – Other Noninterest Income and Expense   Other noninterest income consisted of the following for the periods presented:
		Quarter Ended																				Year Ended
		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Partnership amortization for tax credit purposes		$	(1,992	)		$	(1,977	)		$	(1,824	)		$	(1,834	)		$	(2,013	)		$	(7,627	)		$	(7,988	)
Increase in life insurance cash surrender value			1,891				1,883				1,860				1,844				1,825				7,478				7,018
Loss on sale of 1-4 family mortgage loans			—				—				(4,798	)			—				—				(4,798	)			—
Visa C shares fair value adjustment			—				—				8,056				—				—				8,056				—
Other miscellaneous income			4,399				3,046				4,167				3,092				2,765				14,704				11,201
Total other, net		$	4,298			$	2,952			$	7,461			$	3,102			$	2,577			$	17,813			$	10,231

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.   Other noninterest expense consisted of the following for the periods presented:
		Quarter Ended																				Year Ended
		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Loan expense		$	2,921			$	2,824			$	2,880			$	2,955			$	2,380			$	11,580			$	11,114
Amortization of intangibles			27				28				27				28				33				110				290
FDIC assessment expense			4,815				5,071				4,816				4,509				4,844				19,211				13,529
Other real estate expense, net			(286	)			2,452				327				671				(184	)			3,164				119
Other miscellaneous expense			7,635				6,941				7,189				7,988				8,717				29,753				33,718
Total other expense		$	15,112			$	17,316			$	15,239			$	16,151			$	15,790			$	63,818			$	58,770

Note 7 – Non-GAAP Financial Measures

In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets. Trustmark’s Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands except per share data) (unaudited)
Note 7 – Non-GAAP Financial Measures (continued)
				Quarter Ended																				Year Ended
				12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity				$	1,972,563			$	1,923,248			$	1,727,489			$	1,676,521			$	1,592,493			$	1,825,627			$	1,570,098
Less: Goodwill					(334,605	)			(334,605	)			(334,605	)			(334,605	)			(334,605	)			(334,605	)			(334,605	)
Identifiable intangible assets					(141	)			(168	)			(195	)			(224	)			(253	)			(182	)			(325	)
Total average tangible equity				$	1,637,817			$	1,588,475			$	1,392,689			$	1,341,692			$	1,257,635			$	1,490,840			$	1,235,168
PERIOD END BALANCES
Total shareholders' equity				$	1,962,327			$	1,980,096			$	1,879,141			$	1,682,599			$	1,661,847
Less: Goodwill					(334,605	)			(334,605	)			(334,605	)			(334,605	)			(334,605	)
Identifiable intangible assets					(126	)			(153	)			(181	)			(208	)			(236	)
Total tangible equity		(a)		$	1,627,596			$	1,645,338			$	1,544,355			$	1,347,786			$	1,327,006
TANGIBLE ASSETS
Total assets				$	18,152,422			$	18,480,372			$	18,452,487			$	18,376,612			$	18,722,189
Less: Goodwill					(334,605	)			(334,605	)			(334,605	)			(334,605	)			(334,605	)
Identifiable intangible assets					(126	)			(153	)			(181	)			(208	)			(236	)
Total tangible assets		(b)		$	17,817,691			$	18,145,614			$	18,117,701			$	18,041,799			$	18,387,348
Risk-weighted assets		(c)		$	14,990,258			$	15,004,024			$	15,165,038			$	15,257,385			$	15,153,263
NET INCOME (LOSS) ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income (loss) from continuing operations				$	56,312			$	51,330			$	(100,605	)		$	38,173			$	33,888			$	45,210			$	153,290
Plus: Intangible amortization net of tax from
continuing operations					20				21				20				20				25				81				217
Net income (loss) adjusted for intangible amortization				$	56,332			$	51,351			$	(100,585	)		$	38,193			$	33,913			$	45,291			$	153,507
Period end common shares outstanding		(d)			61,008,023				61,206,606				61,205,969				61,178,366				61,071,173
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity from
continuing operations (1)					13.68	%			12.86	%			-29.05	%			11.45	%			10.70	%			3.04	%			12.43	%
Tangible equity/tangible assets		(a)/(b)			9.13	%			9.07	%			8.52	%			7.47	%			7.22	%
Tangible equity/risk-weighted assets		(a)/(c)			10.86	%			10.97	%			10.18	%			8.83	%			8.76	%
Tangible book value		(a)/(d)*1,000		$	26.68			$	26.88			$	25.23			$	22.03			$	21.73
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity				$	1,962,327			$	1,980,096			$	1,879,141			$	1,682,599			$	1,661,847
CECL transition adjustment					6,500				6,500				6,500				6,500				13,000
AOCI-related adjustments					83,659				29,045				91,557				227,154				219,723
CET1 adjustments and deductions:
Goodwill net of associated deferred
tax liabilities (DTLs)					(320,756	)			(320,757	)			(320,758	)			(370,205	)			(370,212	)
Other adjustments and deductions
for CET1 (2)					(2,058	)			(115	)			(847	)			(2,588	)			(2,693	)
CET1 capital		(e)			1,729,672				1,694,769				1,655,593				1,543,460				1,521,665
Additional tier 1 capital instruments
plus related surplus					60,000				60,000				60,000				60,000				60,000
Tier 1 capital				$	1,789,672			$	1,754,769			$	1,715,593			$	1,603,460			$	1,581,665
Common equity tier 1 capital ratio		(e)/(c)			11.54	%			11.30	%			10.92	%			10.12	%			10.04	%
(1) Calculation = ((net income (loss) adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity. (2) Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands except per share data) (unaudited)
Note 7 – Non-GAAP Financial Measures (continued)   Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.   The following table presents pre-provision net revenue (PPNR) during the periods presented:
			Quarter Ended																				Year Ended
			12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Net interest income (GAAP)		(a)	$	155,848			$	154,714			$	141,029			$	132,830			$	136,742			$	584,421			$	552,878
Noninterest income (loss) (GAAP)				40,950				37,562				(141,286	)			39,355				36,605				(23,419	)			148,433
Add:	Loss on sale of 1-4 family mortgage loans (incl in Other, net)			—				—				4,798				—				—				4,798				—
	Visa C shares fair value adjustment (incl in Other, net)			—				—				(8,056	)			—				—				(8,056	)			—
	Securities (gains) losses, net			—				—				182,792				—				—				182,792				—
Noninterest income from adjusted continuing
operations (Non-GAAP)		(b)	$	40,950			$	37,562			$	38,248			$	39,355			$	36,605			$	156,115			$	148,433
Adjusted pre-provision revenue		(a)+(b)=(c)	$	196,798			$	192,276			$	179,277			$	172,185			$	173,347			$	740,536			$	701,311
Noninterest expense (GAAP)			$	124,430			$	123,270			$	118,326			$	119,664			$	126,195			$	485,690			$	495,696
Less:	Reduction in force expense (incl in Salaries and employee benefits)			—				—				—				—				(1,406	)			—				(1,406	)
	Litigation settlement expense			—				—				—				—				—				—				(6,500	)
Noninterest expense from adjusted continuing
operations (Non-GAAP)		(d)	$	124,430			$	123,270			$	118,326			$	119,664			$	124,789			$	485,690			$	487,790
PPNR (Non-GAAP)		(c)-(d)	$	72,368			$	69,006			$	60,951			$	52,521			$	48,558			$	254,846			$	213,521

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands) (unaudited)
Note 7 – Non-GAAP Financial Measures (continued)   The following table presents adjustments to net income (loss) from continuing operations and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:
	Quarter Ended																				Year Ended
	12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Net income (loss) (GAAP) from continuing operations	$	56,312			$	51,330			$	(100,605	)		$	38,173			$	33,888			$	45,210			$	153,290
Significant non-routine transactions (net of taxes):
PCL, LHFI sale of nonperforming 1-4 family		—				—				6,475				—				—				6,475				—
Loss on sale of 1-4 family mortgage loans		—				—				3,598				—				—				3,598				—
Visa C shares fair value adjustment		—				—				(6,042	)			—				—				(6,042	)			—
Securities gains (losses), net		—				—				137,094				—				—				137,094				—
Reduction in force expense		—				—				—				—				1,055				—				1,055
Litigation settlement expense		—				—				—				—				—				—				4,875
Net income adjusted for significant non-routine
transactions (Non-GAAP)	$	56,312			$	51,330			$	40,520			$	38,173			$	34,943			$	186,335			$	159,220
Diluted EPS from adjusted continuing operations	$	0.92			$	0.84			$	0.66			$	0.62			$	0.57			$	3.04			$	2.60
FINANCIAL RATIOS - REPORTED (GAAP)
Return on average equity from continuing operations		11.36	%			10.62	%			-23.42	%			9.16	%			8.44	%			2.48	%			9.76	%
Return on average tangible equity from continuing operations		13.68	%			12.86	%			-29.05	%			11.45	%			10.70	%			3.04	%			12.43	%
Return on average assets from continuing operations		1.23	%			1.10	%			-2.16	%			0.83	%			0.72	%			0.24	%			0.82	%
FINANCIAL RATIOS - ADJUSTED (NON-GAAP)
Return on average equity from adjusted continuing operations		11.36	%			10.62	%			9.06	%			9.16	%			8.68	%			10.34	%			10.17	%
Return on average tangible equity from adjusted
continuing operations		13.68	%			12.86	%			11.14	%			11.45	%			10.98	%			12.71	%			12.95	%
Return on average assets from adjusted continuing operations		1.23	%			1.10	%			0.87	%			0.83	%			0.74	%			1.01	%			0.86	%

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2024 ($ in thousands) (unaudited)
Note 7 – Non-GAAP Financial Measures (continued)   The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:
			Quarter Ended																				Year Ended
			12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023				12/31/2024				12/31/2023
Total noninterest expense (GAAP)			$	124,430			$	123,270			$	118,326			$	119,664			$	126,195			$	485,690			$	495,696
Less:	Other real estate expense, net			286				(2,452	)			(327	)			(671	)			184				(3,164	)			(119	)
	Amortization of intangibles			(27	)			(28	)			(27	)			(28	)			(33	)			(110	)			(290	)
	Charitable contributions resulting in
	state tax credits			(300	)			(300	)			(300	)			(300	)			(325	)			(1,200	)			(1,300	)
	Reduction in force expense			—				—				—				—				(1,406	)			—				(1,406	)
	Litigation settlement expense			—				—				—				—				—				—				(6,500	)
Adjusted noninterest expense (Non-GAAP)		(c)	$	124,389			$	120,490			$	117,672			$	118,665			$	124,615			$	481,216			$	486,081
Net interest income (GAAP)			$	155,848			$	154,714			$	141,029			$	132,830			$	136,742			$	584,421			$	552,878
Add:	Tax equivalent adjustment			2,596				3,305				3,304				3,365				3,306				12,570				13,465
Net interest income-FTE (Non-GAAP)		(a)	$	158,444			$	158,019			$	144,333			$	136,195			$	140,048			$	596,991			$	566,343
Noninterest income (loss) (GAAP)			$	40,950			$	37,562			$	(141,286	)		$	39,355			$	36,605			$	(23,419	)		$	148,433
Add:	Partnership amortization for tax credit purposes			1,992				1,977				1,824				1,834				2,013				7,627				7,988
	Loss on sale of 1-4 family mortgage loans			—				—				4,798				—				—				4,798				—
	Securities (gains) losses, net			—				—				182,792				—				(39	)			182,792				(39	)
Less:	Visa C shares fair value adjustment			—				—				(8,056	)			—				—				(8,056	)			—
Adjusted noninterest income (Non-GAAP)		(b)	$	42,942			$	39,539			$	40,072			$	41,189			$	38,579			$	163,742			$	156,382
Adjusted revenue (Non-GAAP)		(a)+(b)	$	201,386			$	197,558			$	184,405			$	177,384			$	178,627			$	760,733			$	722,725
Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		61.77	%			60.99	%			63.81	%			66.90	%			69.76	%			63.26	%			67.26	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128049337/en/

Trustmark Investor Contacts:

Thomas C. Owens

Treasurer and Principal Financial Officer

601-208-7853

F. Joseph Rein, Jr.

Executive Vice President

601-208-6898

Trustmark Media Contact:

Melanie A. Morgan

Executive Vice President

601-208-2979

Source: Trustmark Corporation

FAQ

What was Trustmark's (TRMK) Q4 2024 earnings per share?

Trustmark reported diluted earnings per share of $0.92 in Q4 2024.

How much did TRMK increase its quarterly dividend in 2024?

Trustmark increased its quarterly dividend by 4.3%, from $0.23 to $0.24 per share, raising the annual dividend rate to $0.96 per share.

What was TRMK's net interest margin in Q4 2024?

Trustmark's net interest margin was 3.76% in Q4 2024, up 7 basis points from the previous quarter.

How much stock did TRMK repurchase in Q4 2024?

Trustmark repurchased approximately 203 thousand shares worth $7.5 million in Q4 2024.

What was TRMK's return on average tangible equity in Q4 2024?

Trustmark achieved a return on average tangible equity of 13.68% in Q4 2024.